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April 2023 Economic Update – The Banks, The Economy and Valuation

//  by Tower Bridge Advisors

In this video, Tower Bridge Advisors’ Chief Investment Officer Jim Meyer discusses three key topics impacting investors – Banks, the Economy and Valuation. Please watch as Jim provides some perspective on these topics and gives investors some sense of how to position portfolios for what lies ahead.

Tower Bridge Advisors manages over $1.3 Billion for individuals, families and select institutions with $1 Million or more of investable assets. We build portfolios of individual securities customized for each client's specific goals and objectives. Contact Nick Filippo (610-260-2222, nfilippo@towerbridgeadvisors.com) to learn more or to set up a complimentary portfolio review.

# – This security is owned by the author of this report or accounts under his management at Tower Bridge Advisors.

Additional information on companies in this report is available on request. This report is not a complete analysis of every material fact representing company, industry or security mentioned herein. This firm or its officers, stockholders, employees and clients, in the normal course of business, may have or acquire a position including options, if any, in the securities mentioned. This communication shall not be deemed to constitute an offer, or solicitation on our part with respect to the sale or purchase of any securities. The information above has been obtained from sources believed reliable, but is not necessarily complete and is not guaranteed. This report is prepared for general information only. It does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed in this report and should understand that statements regarding future prospects may not be realized. Opinions are subject to change without notice.

Filed Under: Economic Updates, Video Tagged With: Economic Update 2022, Investor topics, Jim Meyer, market outlook, Philadelphia Wealth & Asset Management, portfolio management, Tower Bridge Advisors

Previous Post: « October 26, 2022- Stocks have now risen sharply for three straight sessions as both the value of the dollar and the yield on 10-year Treasuries retreated. But disappointing earnings last night from a trio of tech names may spoil the party this morning. Or at least give it some reason to pause. The poor numbers from tech land remind us to look forward, not back. The great opportunities that technology created over the last quarter century are now maturing. The good news is that new opportunities will appear. They always do in a capitalistic entrepreneurial society.
Next Post: April 26, 2023 – Markets are being buffeted by crosscurrents. The banking crisis has come back into focus amid turmoil at First Republic. Earnings reports move individual stocks both ways. Bond market strength portends a weakening economy and slower inflation. Yet pockets of economic strength endure, mostly in the travel and leisure sectors. The net for equity investors is a standoff, one likely to endure for some time amid persistent rotation of leadership. »

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  • October 9, 2025 – Tariffs were raised this year significantly, but corporate earnings have been coming through surprisingly strong. The U.S. Government shutdown enters its second week, though overall economic growth continues. Inflation has been stuck above the Fed’s preferred level of 2% and unemployment remains relatively low, although the Federal Reserve has embarked on an interest rate easing cycle. Stock markets around the globe have reached record highs, but so has the price of gold, a typically safe-haven investment. If it feels like an episode of the Twilight Zone, you are not alone.
  • October 6, 2025 – As long as earnings growth continues and the 10-year Treasury yield stays within the recent two-year range, the bull run for stocks should continue. The government shutdown news occupies media attention but not on Wall Street, at least until there are significant economic consequences. Ultimately, the ACA subsidies will be extended in some fashion because taking money away from voters can be politically expensive, especially for the party in power. Extending the subsidies will expand deficits but higher income and capital gains taxes will be an offset, at least this year and next.
  • October 2, 2025 – The stock market hit a record high yesterday—despite the government shutdown—which is a testament to the powerful influence of AI, creating a speculative frenzy that masks a cooling labor market and two-tiered, consumer-driven economy. This dichotomy poses a significant risk, making a disciplined and diversified investment strategy essential.
  • September 29, 2025 – AI is deemed by many to be the biggest economic game changer since the invention of the airplane. Maybe so, but PCs, the Internet and the iPhone didn’t move the productivity needle in any discernable way over the past 50 years. No doubt, AI will make us smarter, and some of us more economically productive. But before labeling the next decade as the golden age of productivity, we need to see some evidence of noticeable change. Universal adaptation of AI as a core business process is likely to be expensive and more time consuming than optimists suggest. In the meantime, our economy will continue to grow the old-fashioned way at the old-fashioned pace. That’s not so bad.
  • September 25, 2025 – Fed Chairman Powell noted this week that while equity prices are “fairly highly valued,” this is not a time of elevated financial stability risks. While the U.S. accounts for the majority of the largest companies in the world, our trading partners are also dealing with tariff impacts, inflation, economic growth and interest rate policy setting. The escalators at the United Nations may be glitching, but the U.S. economy, corporate earnings and equity markets around the world have continued to trend higher with a few bumps along the way.
  • September 22, 2025 – The Fed cut rates last week as it focuses more on the deteriorating state of our labor market. The unemployment rate remains modest but only because demand and supply are eroding in tandem, hardly a favorable state of affairs. While the concentration was on labor, more aggressive fiscal and monetary policy could increase inflationary pressures. Thus while President Trump’s new appointee opted for over a one percentage point drop in the Fed Funds rate by year end, the rest of the Board voted to move at a more measured pace. Wall Street applauded that decision.
  • September 18, 2025 – The Federal Reserve cut interest rates by a quarter-point, prioritizing the labor market over persistent inflation. This decision risks a prolonged period of higher inflation and may be fueling a stock market bubble, which is already at a record valuation.
  • September 15, 2025 – So far, investors have been happy with most of the disruptive changes of the Trump Presidency. But the fly in the ointment is the labor market which has shown little growth for several months. Job growth is the ultimate engine for economic growth. Machines and computers can replace workers but they can’t eat or spend money. History says that displaced workers will find alternative employment over time but until they do, growth may slow. Final sales growth within GDP suggests real growth today is well under 2%. That isn’t recessionary but the trend bears watching.
  • September 11, 2025 – The California gold rush began in 1848, when gold was found at Sutter’s Mill in Coloma, California. While many gold prospectors failed to find gold, suppliers of picks and shovels to gold miners garnered the majority of wealth creation. The current gold rush in the artificial intelligence space continues to benefit the picks and shovels equipment suppliers, although the AI “miners” may not all see a similar return on their massive investments.
  • September 8, 2025 – Friday’s employment report was a stinker, confirming an obvious slowdown in the labor market. The unemployment rate is the single most important indicator in America, a legacy of the Great Depression. The simple fact is our workforce drives growth. Without a growing work force the only tailwind is improved productivity. The Federal Reserve, always data dependent and therefore backward looking, is now set to start a series of cuts to the Fed Funds rate beginning next week. Hopefully, those cuts will abort any slowdown and get the economy back on course. Until evidence appears, stocks could experience higher volatility.

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